The US Department of Energy announced on Wednesday its intention to withdraw more than $13 billion in funds previously pledged during the Biden administration to subsidise wind, solar, battery, and electric vehicle projects. The department did not specify which funds would be affected and did not immediately respond to requests for further details. In a statement, the department said, “By returning these funds to the American taxpayer, the Trump administration is affirming its commitment to advancing more affordable, reliable and secure American energy and being more responsible stewards of taxpayer dollars.”
SHARP CRITICISM FROM CALIFORNIA OFFICIALS
The decision drew immediate criticism from California Governor Gavin Newsom, who said the United States was ceding leadership on clean energy to China. California, the nation’s most populous state, is known for having some of the world’s most ambitious clean energy and greenhouse gas reduction targets. Newsom criticized the move during an appearance at a New York Times climate event, stating that the US was relinquishing its global position: “who said the U.S. was ceding leadership on clean energy to China.” He added, “(Chinese) President Xi, I don’t know what else he’s got to applaud. … I think he’s going to give (President Donald) Trump a bear hug when he arrives,” Newsom said during an appearance at a New York Times event on climate change.
INTERNATIONAL MEETINGS AND SHIFTING US CLIMATE POLICY
President Trump stated this week his intention to meet with Chinese President Xi Jinping in person in the coming weeks. The Department of Energy’s announcement followed Trump’s comments at the United Nations General Assembly, where Trump dismissed climate change as “the greatest con job” in the world during his address to the United Nations General Assembly, doubling down on his skepticism of global environmental initiatives and multilateral institutions.
INCREASED FOCUS ON OIL AND GAS, LESS ON RENEWABLE ENERGY
Since returning to office in January, President Trump has pushed to maximise oil and gas output, which was already at record levels, while also reducing subsidies for renewable energy and electric vehicles. Energy Secretary Chris Wright referenced the cancellation of the funds during a press conference in New York, explaining, “Wright said Trump sent a message that the UN and many countries have just gotten wildly off track with climate change, exaggerating it into the world’s greatest threat. It has spurred massive amounts of spending with very little positive impact.'”
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